The insurance industry should leverage marketing campaigns to tackle the perception problem that is contributing to a talent crisis, according to a Free Partners report.
The Re: Generation Report found that the insurance industry faces an ageing workforce, with 26% of employees over the age of 50 and 25% expected to retire within the next 10 years.
This issue has been exacerbated by the industry’s perception problem, which is making it more difficult to attract young talent as less than one-third of 16- to 24-year-olds consider insurance an appealing career option.
Lorraine Jeckells, Managing Partner of Free Partners, told Financial Promoter that the global pandemic prompted the younger generation to reassess their life goals, including their career. As a result, younger workers now have a stronger desire to work for companies that align with their values and offer personal fulfilment.
However, the report revealed the insurance industry is struggling to convince young people that it can meet these demands. While 87% of young people seek personal balance and growth above all else, only 46% believe they can achieve these goals within the insurance sector.
Meanwhile, 79% of young people want to find a greater purpose in their work, but only 34% think that insurance can offer this. Similarly, 71% want a fun and social work environment, but only 30% think insurance fits that description.
It’s crucial for insurance companies to address these issues, as the impact of the talent shortage will extend beyond the companies themselves to affect everyday people as well, Jeckells added.
She said: “Insurance is an essential invisible thread that runs through every aspect of our lives, both personally and commercially. The reason we’re able to create life-saving vaccines, put astronauts into space and simply go to a concert, is because insurance provides the protection to enable these things to happen. If the talent well runs dry, the insurance industry will become stagnant, without innovation and creation to meet all the emerging and future risks that we face.”
The report found that insurance can indeed meet the demands of younger generations. However, companies will need to reposition the industry through marketing campaigns to change perceptions towards thinking it is an appealing choice.
For example, the report found young people want their work to be helpful and address genuine needs, with nearly eight in 10 (78%) aspiring to work in an industry that makes a positive impact.
Therefore, Jeckells recommended insurance companies market themselves in a way that clearly communicates that insurance exists to help people during life’s challenging setbacks.
According to the report, insurance companies should also convey the message that insurance requires continuous learning and upskilling due to ongoing regulatory changes, technological advancements and new risks.
This should attract more young people as they are prioritising personal development, with 86% agreeing that learning and growing as a person is very important to them.
Companies should also work to change the perception of the 67% of respondents who view insurance jobs as boring by demonstrating how the industry operates, with an emphasis on the constant variety and dynamic nature of the work.
Jeckells said it only takes a few early adopters to implement these changes to shift younger people’s perceptions and transform the industry. As these pioneers gain a competitive advantage, other insurance firms will likely follow suit.
While marketing will be crucial in addressing the issue, insurance companies shouldn’t rely solely on marketers. Instead, they should enhance collaboration between marketing teams, c-suites and HR departments, Jeckells added.
She said: “Marketing is an essential, but not independent part of changing perceptions. We have a role that goes beyond mere communication or output. But change must be real and real change comes from within.
“Values, culture, drive, and direction come from the core of business but must be transmitted 360 degrees throughout for it to be believed and acted upon. We see this as a dual opportunity and responsibility for HR and marketing to own.”